21. On January 1, YR09 Target Inc. began business operations. The company's year end is December 31. Required: Prepare formal journal entries that would be recorded on the dates listed below. At the start of each new year the company reverses accrued liabilities (i.e., uses reversing journal entries). Also, the company records adjusting journal entries only once each year, at year end (December 31). For convenience, round all final answers to the nearest dollar (do not round intermediate calculations). Date January 5, YR09 January 10, YR09 March 5, YR09 April 1, YR09 September 1, YR09 September 5, YR09 December 8, YR09 December 20, YR09 December 31, YR09 January 1, YR10 January 1, YR10 Event Sold 100 shares of common stock for $40 per share. The stock has a par value of $5 per share. Received and paid a bill from Merrill Lynch Inc. for underwriting services rendered in helping the company issue the common stock. The amount of the bill was $10. Sold in a lump sum sale a package of 100 common shares and 1,000 warrants for a total price of $6,000. Each warrant entitles the holder to purchase one share of common stock for $20 during the period July YR09 to December 2020. At the date of the sale the common stock had a market value of $35 per share and the market value of the warrants was unknown. Sold 100 shares of Class A preferred stock for $120 per share. Class A preferred is cumulative, non- participating, has a par value of $100 per share, and has an annual dividend rate of 4%. Each share of preferred stock can be converted into 2 shares of common stock beginning February 1, YR10. The stock indenture agreement indicates that the annual dividend will be prorated in the year of issuance and the year of conversion based on the time the preferred stock is actually outstanding. Sold $2,000 of convertible bonds at 95. Each bond has a face value of $1,000 and a coupon rate of 3%. These bonds are dated July 1, YR09 and mature June 30, YR14 (term = 5 years). Each bond is convertible into 20 shares of common stock on an interest payment date. Interest on these bonds is paid each July 1 and January 1. Company policy is to accrue interest and record amortization (if any) once each year on December 31. Amortization is booked using the straight-line method. Received and paid a bill from Merrill Lynch Inc. for underwriting services related to issuance of the convertible bonds. The amount of the bill was $40. The Board of Directors declared the dividend on preferred stock. The date of record was set as December 20, YR09 and the date of payment was set as January 15, YR10. Date of record for the preferred dividend declared on December 8, YR09. Made all necessary adjusting entries. Recorded reversing journal entries. Paid interest on the convertible bonds.